Consider a monopolistically competitive industry which is in long-run equilibrium. Which of the following is TRUE?
A) All firms charge a price equal to average total cost.
B) All firms charge a price equal to marginal cost.
C) All firms earn positive economic profit.
D) Demand, average total cost, and marginal cost all intersect.
A
You might also like to view...
In the United States, all levels of government together spend about
a. one out of every three dollars paid for finished goods and services b. half of the dollars paid for defense spending c. the same amount as private citizens and corporations d. one out of every three dollars paid for education e. 80 percent of their budgets on transfer payments
When Republicans and Democrats offer similar platforms in an election campaign, a likely explanation is the
a. Arrow impossibility theorem. b. Condorcet paradox. c. median voter theorem. d. fact that politicians are more interested in the national interest than their own self-interest.